Altius Renewable Royalties Announces New US$30MM Financing of U.S. Distributed Solar Generation Developer

Rhea-AI Summary

Altius Renewable Royalties (OTCQX: ATRWF) announces a US$30 million financing agreement through its subsidiary, Great Bay Renewables, with Nokomis Energy. The agreement targets Nokomis's solar projects portfolio, spanning 77 developments across seven states. The investment will be distributed in tranches based on project milestones, beginning with an initial US$6 million. Great Bay will secure a 3% or higher gross revenue royalty per project until a minimum return is met. Additionally, Great Bay has the option to invest another US$15 million in the future. This deal marks Great Bay’s entry into the distributed solar market, diversifying its renewable energy investments.

Positive

• US$30 million financing agreement for solar projects.
• Initial US$6 million investment upon closing.
• Great Bay secures a 3% or greater gross revenue royalty per project.

Negative

• Investment distributed over two to three years, delaying potential returns.

ST. JOHN’S, Newfoundland--(BUSINESS WIRE)-- Altius Renewable Royalties Corporation (“ARR”) (TSX:ARR, OTCQX: ATRWF) is pleased to announce that its jointly controlled subsidiary, Great Bay Renewables LLC (“Great Bay”), has entered into a transaction with U.S. renewable energy developer, Nokomis Energy, LLC (“Nokomis”), to gain future royalties related to Nokomis’s portfolio of solar development projects. Great Bay is jointly controlled by Altius Renewable Royalties Corporation and certain Apollo-managed funds (“Apollo”).

Nokomis, based in Minneapolis, Minnesota, is committing its portfolio of 77 development projects located across 7 states to this new royalty investment, as well as any future development projects added to its portfolio.

The up to $30 million royalty investment into Nokomis will be invested in tranches as Nokomis achieves certain project advancement milestones. As individual pipeline projects are developed, Great Bay will receive a gross revenue royalty agreement on each project until a target minimum return is achieved.

Commenting on the new partnership with Nokomis, Frank Getman, CEO of Great Bay, said “The Nokomis team has an outstanding track record of development success in and around their home market of Minnesota, having commercialized over 45 projects to date. With Nokomis, GBR is making our first dedicated investment into the distributed solar market. Distribution scale solar represents an exciting diversification opportunity for Great Bay. Our flexible, partner-like capital has helped create significant value for our existing development partners and we believe this investment will give Nokomis the resources to advance their existing portfolio and scale the platform.”

“We are excited about what this partnership with Great Bay does for our ability to deliver distributed generation projects into existing and emerging markets across the Upper Midwest” said Brendan Dillon, Co-Founder and President of Nokomis Energy. “The Great Bay team has proven the ability to enable the growth of utility scale project developers and we’re looking forward to working with them to apply this model to grow our distributed generation platform. This investment allows us to take a long-term view on providing the types of clean energy projects that fit the communities we live and work in.”

Transaction Terms

The US$30 million royalty investment into Nokomis will be invested in tranches over approximately the next two to three years as Nokomis achieves certain project advancement milestones, with an initial investment upon closing of US$6 million.

Great Bay will be assigned a 3% or greater gross revenue royalty on every project sold until it achieves a target minimum total portfolio valuation threshold. In addition, Great Bay may elect to receive a portion of all project sales proceeds. Great Bay will continue to receive royalty assignments and available sales proceeds until the minimum return threshold is met.

As part of the transaction, Great Bay has the option to invest an additional US$15 million into Nokomis as royalty financing in the future.

Great Bay was advised on this transaction by an advisory team from CCA Capital LLC led by Martin Pasqualini and a legal team at Pierce Atwood LLP led by Kris Eimicke. Nokomis Energy was advised by Javelin Capital.

About ARR

ARR is a renewable energy royalty company whose business is to provide long-term, royalty-level investment capital to renewable power developers, operators, and originators. ARR currently has 11 renewable energy royalties representing 2,376 MW of renewable power on operating projects, and an additional approximately 6.0 GW on projects in the construction and development phases, across several regional power pools in the U.S. The Corporation also expects future royalties from GBR’s investments in Bluestar Energy Capital, Hodson Energy, Nokomis Energy and Hexagon Energy. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

Forward-looking information

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627463032/en/

For further information, please contact:

Flora Wood, Corporate Secretary

Email: Flora@arr.energy

Tel: 1.877.576.2209

Direct: +1(416)346.9020



Ben Lewis, CFO

Email: Ben@arr.energy

Tel: 1.877.576.2209

Source: Altius Renewable Royalties Corporation

FAQ

What is the new financing agreement announced by Altius Renewable Royalties?

Altius Renewable Royalties (OTCQX: ATRWF) announced a US$30 million financing agreement through its subsidiary, Great Bay Renewables, with Nokomis Energy for solar projects.

How much is the initial investment in the Altius Renewable Royalties and Nokomis Energy agreement?

The initial investment is US$6 million, part of a total US$30 million financing agreement.

What type of royalty will Great Bay Renewables receive from Nokomis Energy’s projects?

Great Bay Renewables will receive a 3% or greater gross revenue royalty on each project until a target minimum return is achieved.

What does the new partnership between Altius Renewable Royalties and Nokomis Energy involve?

The partnership involves a US$30 million investment by Great Bay Renewables into Nokomis Energy’s solar projects, with royalties on project revenues.

What states are included in Nokomis Energy’s solar projects portfolio under the new agreement?

Nokomis Energy’s solar projects portfolio spans seven states in the United States.

What potential future investment does Great Bay Renewables have in the Altius Renewable Royalties and Nokomis Energy deal?

Great Bay Renewables has the option to invest an additional US$15 million into Nokomis Energy as part of the future royalty financing.